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IOC Assets Divestment Good for Local Players – Alison-Madueke

Written by Thursday, 11 September 2014 10:39 Published in Latest News 0
IOC Assets Divestment Good for Local Players – Alison-Madueke
 

Contrary to the apprehension in some quarters that the recent spate of assets divestments by international oil companies (IOCs) operating in Nigeria could create crisis in the oil and gas industry, the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, noted that the trend actually provides opportunity for indigenous oil and gas companies to become active players in the upstream sub-sector of the industry.

At an investment luncheon organized by the Petroleum Technology Association of Nigeria (PETAN) during the recent Offshore Technology Conference in Houston, Texas, The Minister explained that with the divestments indigenous oil and gas companies now have opportunity to acquire the assets being divested as springboard for the development of local capacity.

Speaking on “Assets Divestments in the Nigerian Oil and Gas Industry: Opportunities and Challenges”, the Minister who was represented by the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Engr. Andrew Yakubu, stated that the divestments by the IOCs were creating opportunities for indigenous oil and gas companies to partake of the upstream sector of the industry and grow capacity.

“Let me allay your fears that the spate of divestments would not lead to crisis in the nation’s oil and gas industry, rather the divestment by the majors is changing the onshore corporate landscape and creating material brownfield opportunities for upstream players looking to enter the Nigerian upstream space,”Alison-Madueke noted.

She observed that the divesting IOCs were not leaving the country but only shifting their focus from onshore to the more challenging frontiers of deep offshore which currently accounts for 60% of Nigeria’s production.

The IOCs remain very much present in Nigeria. Shell still retains ownership of 34 onshore blocks while Total, ExxonMobil, and Chevron are still committing large amounts of capital to assets offshore Nigeria,” she explained.

Highlighting the opportunities inherent in the divestment, Alison-Madueke stated: “The indigenous Nigerian companies have been presented with the opportunity to develop local operatorship capacity as well as boost local production and consequently grow into major upstream players”.

She cited the Nigerian Petroleum Development Company (NPDC), the upstream subsidiary of the Nigerian National Petroleum Corporation (NNPC), as an example of indigenous Nigerian company that has tapped into the opportunity provided by the divestment to transform from a small time player with a production of 60,000 barrels per day (bpd) in 2007 to a mid-size player with a current production of over 140,000 bpd through the assignment of 55% equity in 8 divested blocks.

She disclosed that NPDC has grown to become the biggest producer and supplier of gas to the domestic market through its aggressive development of the assets assigned to it from the divestment process, adding that the Federal Government was ready to strengthen and support the company toachieve its medium term objective of growing production to 250,000 bpd.

OHI ALEGBE

Group General Manager

Group Public Affairs Division

Nigerian National Petroleum Corporation

NNPC Towers, Abuja.

13/05/14

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Press Release - NNPC Urges Nigerians to Embrace Usage of Cooking Gas
Press Release - NNPC Urges Nigerians to Embrace Usage of Cooking Gas

The Management of the Nigerian National Petroleum Corporation, NNPC, has expressed its readiness to reinvigorate and increase the domestic consumption of the liquefied natural gas otherwise known as cooking gas across the length and breadth of the country.

The Group Managing Director of the Corporation, Engr. Andrew Yakubu made this commitment while delivering a key note address at the combined graduation ceremony of Chief Officers Management Development programme of batches 069 to 072 at the NNPC Towers, Abuja.

Engr. Yakubu noted that as part of efforts to reduce the pressure on kerosene consumption, the NNPC is refocusing its strategy to encourage and aggressively grow the consumption of LPG which provides a cleaner and cheaper energy alternative.

“NNPC’s footprint in the domestic gas market has attained unprecedented growth. With the commissioning of the NPDC’s 100 million standard cubic feet of gas per day Oredo gas processing facilities and the acquisition of the new assets, NPDC is now the biggest producer and supplier of gas into the domestic market, contributing over 400 million standard cubic feet of gas per day,” Engr. Yakubu posited.

He stated that the Nigerian Petroleum Development Company, NPDC, is being repositioned to become a medium sized independent Exploration and Production Company with a production capacity of at least 250,000 barrels per day by the year 2015.

According to him, today, NPDC assets base has grown with the assignment of new oil mining leases stressing that the management under his watch is determined to further pursue new strategies to grow production to the target of 250,000 bpd by 2015 from the current level of 130,000bpd.

The NNPC helmsman said in line with the strategic direction to support the Federal Government to increase national crude oil reserve and producibility to 40 billion and 4 million barrels per day, there is aggressive exploration campaign in offshore, onshore and the inland basins of Chad, Anambra, Benue, Bida and Sokoto Dahomey.

“We are as well carrying out infield developments which have resulted in increased reserve and with the intensified approach, including the expedited action on new projects like Egina etc the reserve and production targets is realizable,” Engr. Yakubu affirmed.

The GMD revealed that over 1,000 square kilometres of seismic data have been acquired in the Chad Basin in spite of the security situation in Borno State.

Engr. Yakubu said revamping of the Corporation’s critical downstream facilities such as the refineries, depots, pipelines and jetties have remained the focus of the management stressing that these spirited efforts will ensure seamless supply and distribution of petroleum products nationwide.

He implored the graduands to deploy their expertise to enhance the efficiency of the Corporation stressing that integrity, accountability and transparency must be their watch word.

In his welcome address, the Group Executive Director Corporate Services, Dr. Dan Efebo reiterated the determination of the NNPC to the training and retraining of the workforce saying the members of staff remain the cornerstone of any business concern.

The COMDP was established 24 years ago by the Group Learning Department of the NNPC and has recorded a total of 3,521 participants so far. The programme is designed to impart managerial skills to members of staff who are promoted from senior staff cadre to management cadre.

Mr. Ohi Alegbe

Group General Manager

Group Public Affairs Division,

NNPC, Abuja.

23rd April, 2014.

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OTC a blessing to Indigenous Companies – Engr. Yakubu

Written by Thursday, 11 September 2014 10:20 Published in Latest News 0
OTC a blessing to Indigenous Companies – Engr. Yakubu
OTC a blessing to Indigenous Companies – Engr. Yakubu

The Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Engr. Andrew Yakubu has described the participation of Indigenous oil and gas companies at the annual Offshore Technology Conference, OTC, in Houston Texas, USA as a big boost which has provided the platform for the acquisition of technology and diverse skills for local players.

Speaking after inspecting the pavilions of the various Nigerian oil and gas companies participating in the 2014 OTC with the theme: “Asset Divestment in the Nigerian Oil and Gas Industry: Opportunities and Challenges,” Engr. Yakubu noted that the exposure offered by the OTC has made the companies better organized and more efficient.

He explained that the fallout of the regular participation of Nigerian Oil and Gas Companies at the previous conferences has led to the massive acquisition of expertise in drilling, well testing, surface maintenance, drilling services and other contemporary technology that have taken the petroleum industry to its current level.

“From what you have seen in terms of showcasing the gains of the various outing in the OTCs, you have clearly seen that today, the level of expertise and technology that our indigenous companies have acquired is quite significant. They are able to participate in virtually the entire spectrum of the oil and gas services. These are expertise that were purely resident outside the country in the past, but from the fallout of our outings, there have been significant acquisition of technology that have enabled our indigenous players to work without importing these technologies,”Engr. Yakubu averred.

He informed that in the last few years, the country has ramped up gas supply from 300 million standard cubic feet per day to 1500 million standard cubic feet per day as a result of the current fiscal regime introduced by the present administration stressing that the growth by any global standard was quite impressive.

“As at today, the NNPC is the largest producer of gas for domestic use. The NNPC produces over 400 mscfpd and plans are underway to increase it by 250mscfpd before year end,” Engr.Yakubu stated.

The NNPC GMD commended President Goodluck Ebele Jonathan and the Honourable Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke for their massive support, adding that a lot is going on to actualize the Federal Government Gas-to-Power initiative in the country.

Commenting on the scheduled Turn Around Maintenance (TAM) of the state owned refineries, Engr. Yakubu submitted that already the NNPC has gone ahead to place order for some of the vital components of the Port Harcourt Refinery and that negotiations were still on to ensure that the TAM is carried out as scheduled.

The NNPC helmsman said the Petroleum Industry Bill, PIB, currently before the National Assembly is geared towards improving the business environment of the Nigerian Oil and Gas Industry, adding that when finally passed it would improve government’s take from the petroleum industry.

The Offshore Technology Conference started 45 years ago with the aim of fostering offshore technologies and sharing of ideas on how to grow and develop the oil and gas industries of participating countries all around the world.

OHI ALEGBE

Group General Manager

Group Public Affairs Division

NNPC, Abuja

6th May, 2014.

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No Rift Between Petroleum Minister, GMD Says NNPC

Written by Thursday, 11 September 2014 10:18 Published in Latest News 0

 

The Nigerian National Petroleum Corporation, NNPC, has said that the Minister of Petroleum Resources and Chairman of NNPC board, Mrs. Diezani Alison-Madueke and the Group Managing Director of the Corporation, Engr. Andrew Yakubu are in harmonious working relationship and dismissed insinuations in some quarters of a phantom frosty relationship between the two key figures in the oil and gas industry.
 
The Group General Manager, Group Public Affairs Division of the NNPC, Mr. Ohi Alegbe described the reports as a figment of the overheated imagination of the authors.
 
Mr. Alegbe said the Minister of Petroleum Resources and the NNPC in the last few months have heeded countless number of summons from the National Assembly wondering why the media would go to town with the report that the Petroleum Minister was doing everything to thwart the proposed investigation into the alleged N10billion purportedly expended on the charter of jets by the Corporation.
 
The NNPC spokesman maintained that the Minister and the Corporation are putting together all the documents that the House of Representatives Committee on Public Account had requested for, stressing that at the end of the probe, the Minister and the Corporation would be vindicated.
 
Mr. Alegbe averred that the GMD of the Corporation was in London last week for the board meeting of the Nigerian Liquefied Natural Gas, NLNG, saying the NNPC would remain focused on its core mandate of guaranteeing energy sufficiency for the country.
 
The NNPC Spokesman dismissed the reports in its entirety and implored media practitioners to adhere to the ethics of journalism which holds facts as sacred and recommends that when in doubt, leave out.
 
Meanwhile In a deft move aimed at sanitizing the nation’s fuel supply and distribution channel, the Minister of Petroleum Resources has reeled out measures to ensure round the clock availability of petrol across the country.
 
Under the arrangement, the Minister has approved the allocation of a total volume of 1, 854, 314 metric tonnes of premium motor spirit known as petrol as supplementary volumes for first quarters 2014 and second quarter 2014 June only delivery.
 
Mr. Alegbe, explained over the weekend that the supplementary volume for Q1 quota is 750, 000 Mt and the Q2 June only volume is 1, 104, 318. He noted that whilst the first quarter supplementary volume is designed to complement the earlier allocation in addition to covering any under delivery by marketers due to unforeseen financial challenges, the Q2 (June only) quota is in consonance with the national consumption pattern of 40 million litres per day.
 
The NNPC Spokesman also noted that the Q2 quota also captures a 23 percent upper tolerance in the event of default or slippage into July.
 
``There are 27 oil marketing companies with proven performance records enlisted in respect of Q1 deliveries. For Q2 (June only), there are 40 marketers with good performance records and whose facilities are functional. The idea of June only is to revert back to the normal quarterly sequence, i.e. July-September and October-December,’’ he said.
 
On measures to ensure full compliance in line with the aspiration of zero fuel queues, Mr. Alegbe noted that the Petroleum Products Pricing Regulatory Agency, PPPRA, the body with the statutory responsibility in this regard has inserted a provision in the allocation document which allows for the deduction of equivalent volume from the defaulting marketer’s subsequent allocation in event of slippage or default.
 
He noted that the PPPRA, NNPC and its downstream subsidiary the Pipelines and Products Marketing Company, PPMC, as well as the Department of Petroleum Resources, DPR, are working in concert with other key downstream operators to ensure the realization of the zero fuel queues aspiration of the Petroleum Resources Minister.
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PRESS RELEASE - GAS DEVELOPMENT KEY TO NIGERIA’S ECONOMIC GROWTH –YAKUBU
PRESS RELEASE - GAS DEVELOPMENT KEY TO NIGERIA’S ECONOMIC GROWTH –YAKUBU

Nigeria’s economic growth is hinged on the development of its abundant natural gas resources, Group Managing Director of the NNPC, Engr. Andrew Yakubu has stated.

Engr. Yakubu disclosed this during a Combined Opening Ceremony of the 073-079 batches of the Chief Officers’ Management Development Programme (COMDP) at the NNPC headquarters in Abuja, Thursday.

“Without any doubt, harnessing our gas resources will bring about an unquantifiable value to our economy. Talk about our power aspirations, job creation and entrepreneurship, gas is the real stimulant for our economic growth and development,” Engr. Yakubu stated.

The GMD further observed that the NNPC is fully committed to the actualization of the Federal Government’s Gas Revolution Agenda particularly with the opening up of several gas-based industrialization programmes across the country.

“The Gas Industrial Park Complex at Ogidigben in Delta State is a pointer in that regard as it will house a petrochemicals plant, a fertilizer plant, an IPP and a Central Processing Facility (CPF),” he said.

 

According to Engr. Yakubu, the complex would stimulate several gas-based industrialization initiatives across the country, with robust multiplier effect that will significantly generate employment and positively impact the gross domestic product of the nation.

In his paper titled: “Gas Commercialisation and Nigerian Economic Growth: Issues and Challenges,” the Lecturer at the occasion, Professor Pat Utomi of the Lagos Business School emphasized the need to utilize the nation’s abundant gas resources to create a plethora of opportunities for Nigerians, especially in the gas value chain.

He said: “Nigeria’s hope is in gas. Nigeria’s gas value chain has to be the key driver of our economy going forward. In this regard, we must marry our gas commercialization initiatives with the right policies.

 

Utomi charged the course participants to be “rapid learners of the rapidly changing business environment of oil and gas” so as to help the NNPC realize its full potentials.

 

The COMDP is an intensive, 7-week programme which has over the years, proven to be a veritable platform for the development of managerial and leadership talents and skills for the Corporation.

 

Now in its 24th year, the batches 073-079 comprise of 375 participants who were drawn from all Strategic Business Units (SBUs) of the entire Corporation.

 

 

Ohi Alegbe

Group General Manager

Group Public Affairs Division,

NNPC, Abuja.

24th April, 2014.

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PRESS RELEASE - NNPC Pumps Additional 956,501,315 Million Litres of Fuel to Address Scarcity
PRESS RELEASE - NNPC Pumps Additional 956,501,315 Million Litres of Fuel to Address Scarcity

The Nigerian National Petroleum Corporation, NNPC, over the weekend said it has pumped additional 956, 501,315 million litres of premium motor spirit, petrol, to the market as part of efforts to restore normalcy to the fuel situation in the country.

 

In a press statement issued to Journalists on Sunday, the Acting Group General Manager, Group Public Affairs Division of the NNPC, Dr. Omar Farouk Ibrahim said the Corporation currently has 24.4 days sufficiency of PMS. "The nation has 956,501,315 million litres of petrol which is equivalent to 24.4 days sufficiency and this will continue to increase to over 30 days sufficiency before the end of march,” Dr. Ibrahim revealed.

 

He reassured Nigerians that the NNPC, as the nation’s supplier of last resort is working round the clock to wet the nation with petroleum products in order to mitigate the hardship encountered by motorists on fuel queues.

 

The NNPC spokesman called on Motorists to avoid panic buying assuring that everything humanly possible is being done to restore sanity to the supply of petrol. He called on Marketers and other players in the downstream sector of the petroleum industry to join hands with the NNPC to wet the market with the product.

 

Dr. Omar Farouk Ibrahim.

Acting Group General Manager,

Group Public Affairs Division,

NNPC, Abuja.

16th  March, 2014.

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As part of efforts to ameliorate the pains of the injured victims of the ill-fated Monday bomb explosion in Nyanya, the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke and the Nigerian National Petroleum Corporation, NNPC, have donated several consumable medical equipment to the National Hospital and the Asokoro District Hospital Abuja.
 
Represented by the Group Executive Director, Corporate Services of the NNPC, Dr. Dan Efebo, Mrs. Alison-Madueke condemned the nefarious activities of the terrorists while on a visit to the medical institutions to see how injured victims were responding to treatment.
 
She described the unwarranted attacks on hapless Nigerians as barbaric and called on well-meaning Nigerians to team up with the Federal Government to stop the menace.
 
The Minister identified with the injured victims and prayed God to grant the bereaved families the fortitude to bear the irreparable loss and rest to the souls of the departed.
 
Receiving the representative of the Petroleum Minister and the NNPC team at the National Hospital, the Board Chairman Dr. Tony Okam applauded the Minister and the NNPC for their show of solidarity at this moment of national disaster and solicited for the donation of ambulances to help the prompt response to emergency by the hospital.
 
Speaking in similar vein, the Medical Director of the Asokoro District Hospital, Dr. Abubakar Ahmadu expressed gratitude to the Minister and the NNPC for their kind gesture assuring that the equipment would go a long way in stabilizing the health conditions of the victims of the blast.
 
The NNPC team is scheduled to pay a similar visit to the Nyanya General Hospital on Tuesday to extend the gesture to the victims in the Hospital.
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NNPC Sues for Sustenance of Industrial Harmony

Written by Thursday, 11 September 2014 10:13 Published in Latest News 0
NNPC Sues for Sustenance of Industrial Harmony
NNPC Sues for Sustenance of Industrial Harmony

The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) Engr. Andrew Yakubu has urged the leadership and members of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) to sustain the industrial harmony between the management of the NNPC and the Association.

Engr. Yakubu made this call Tuesday during the opening ceremony of the 4th triennial national delegates’ conference of the Association in Abuja.

He lauded the Association for the cooperation and support extended to him and his management team since their assumption of duties, noting that the synergy has led to the growth of the entire petroleum industry.

Engr. Yakubu stated that over the years, PENGASSAN has contributed immensely to the stability and growth of robust industrial relations in the country by demonstrating a very high sense of cooperation and maturity in the conduct of its affairs.

The NNPC GMD expressed gratitude to the outgoing central working committee of the Association for their loyalty and constructive dialogue and enjoined the delegates to elect credible leaders to steer the affairs of the Association, going forward.

 

In his keynote address, the Minister of Labour and Productivity, Chief Emeka Wogu described the role of PENGASSAN as pivotal to the national economy and urged members of the Association to continue to maintain the industrial peace in the petroleum sector.

Earlier, the outing President of the Association, Comrade Babatunde Ogun said the oil workers’ unions are fully committed to the growth of democracy and good governance in Nigeria and called on the National Assembly to expedite action on the passage of the Petroleum Industrial Bill which is geared towards enthroning transparency in the petroleum sector.

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Fuel Scarcity: FG Says No Plan to Hike Pump Price of Petrol

Written by Thursday, 11 September 2014 10:12 Published in Latest News 0

Press Release - Fuel Scarcity: FG Says No Plan to Hike Pump Price of Petrol

 

…..Says Privatization Policy of Refineries Suspended

 

The Federal Government has said that there are no plans to increase pump price of fuel now or in the near future and called on marketers to collaborate with it to eradicate the fuel queues from filling stations across the country.

 

The Minister of Petroleum Resources and Chairman of the Board of the Nigerian National Petroleum Corporation, Mrs. Diezani Alison-Madueke stated this Tuesday after the Ministry’s budget appraisal for 2013 and budget defence for 2014 before the Senate and House of Representatives Joint Committees on Petroleum Upstream, Downstream and Gas in Abuja.

 

Mrs. Alison-Madueke informed that already the situation is coming under control and steps are being taken to flood the market with petrol in the next few weeks.

 

 “There seems to be some sorts of rumours that we intended to increase the pump price of petroleum products and I have said categorically and severally that the Federal government has no intention of increasing the pump price of PMS (premium motor spirit) or petroleum products now or in the near future. That is for certain,” Mrs. Alison-Madueke reaffirmed.

 

She argued that the tightness in the petroleum products supply chain is as a result of hoarding and diversion of the products by marketers stressing that those that are found diverting or hoarding will be made to face the full wrath of the law.

 

Mrs. Alison-Madueke said that based on the actual funds released to the Ministry in 2013, the budget performance stood at 89.6% adding that the capital release recorded 50.2% while recurrent recorded 100%.

 

She revealed that over N60bn is projected for the 2014 budget in line with the Medium Term Expenditure Framework while assuring that the Ministry would complete some of the ongoing projects that were started in the previous financial year.

 

The Minister said the Liquefied Petroleum Gas Framework in the 2014 budget is geared towards having a robust LPG development in the country stressing that the Ministry is collaborating with NNPC Retail to ensure that the LPG project receives full implementation.

 

Answering a question on the status of the planned privatization of the refineries, Mrs. Alison-Madueke averred that the Federal Government stood down the privatization policy of the state owned refineries because of the agreement reached with the labour unions and added that the best way forward is privatization.

 

Commenting on the frontier exploration activities, Mrs. Alison-Madueke posited that the Chad exploratory activities were still ongoing stressing that in 2013 because of the heightened insecurity in the area not much was done.

 

In his remarks, the Senate Joint Committee Chairman, Senator Emmanuel Paulker said the budget performance of the Ministry in 2013 was based on the funds released to them and urged the Ministry of Petroleum Resources to find a lasting solution to the delays recorded in the procurement processes to fast track the capital projects in the oil and gas sector.

 

Similarly, the House of Representatives Joint Committee Chairman, Hon. Muraina Ajibola called on the Minister to perform the magic of restoring normalcy to the supply of petroleum products in order to reduce the pains being witnessed by Nigerians across the country.  

 

Dr. Omar Farouk Ibrahim

Acting Group General Manager

Group Public Affairs Division

NNPC, Abuja

11/03/14

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NNPC Reiterates Commitment to Transparency, Accountability

Written by Thursday, 11 September 2014 10:04 Published in Latest News 0

 

NNPC Reiterates Commitment to Transparency, Accountability

The Nigerian National Petroleum Corporation, NNPC, has expressed its readiness to continue to cooperate and collaborate with the Nigeria Extractive Industries Transparency Initiative, NEITI, in order to instill greater transparency and accountability in the extractive industry in Nigeria.

The Group Managing Director of the NNPC, Engr. Andrew Yakubu stated this Wednesday during the public presentation of fiscal allocation and statutory disbursements and solid minerals audit reports in Abuja.

Engr. Yakubu noted that the Corporation over the years has demonstrated its resolve to conduct its business in transparent manner and be more accountable to Nigerians.

He applauded NEITI for providing the Corporation a veritable platform for showcasing its activities and assured of the NNPC’s continuous participation in NEITI activities.   The NNPC helmsman also commended the effort of the board of NEITI for taking giant stride to engage a team of reputable professional auditors to carry out the exercise which is aimed at tracing the disbursement of oil and gas revenue to all beneficiaries.                                       

In her welcome address, the Executive Secretary of NEITI, Mrs. Zainab Ahmed said the conduct and public presentation of the audit reports was in line with the principles of the global Extractive Industries Transparency Initiative, EITI.                                       

Presenting the report, the NEITI Chairman, Mr. Ledum Mitee said contrary to the claim by the Federal Account Allocation Committee, FAAC, that the NNPC under remitted the sum of N31.15 billion in December 2011, the report showed that the NNPC remitted the said sum in February 2012. This explained NEITI was due to the January 2012 general strike on oil and gas subsidy.                                    

High point of the event was the presentation of the two audit reports titled solid minerals audit report and the fiscal allocation and statutory disbursement audit 2007 to 2011.

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